Skye Bioscience (SKYE) AI Stock Analysis

• Market Cap: $41.67M
• Dividend Yield: N/A
• Average Volume (3M): 1.36M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.96
• Revenue Growth: N/A
• EPS Growth: -53.18%
• Country: US
• Employees: 16
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.32
• Shares Outstanding: 32,057,460
• 10 Day Avg. Volume: 312,316
• 30 Day Avg. Volume: 1,355,489
• PEG Ratio: 0.04
• Price to Book (P/B): 1.52
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.85
• Enterprise Value/Market Cap: 2.90
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: -2.39
• 1Y Price Target: $9.80
• Price Target Upside: 653.85% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): -1.41
• Revenue Forecast (FY): N/A

• Rating: 38 Underperform
• Price Target: ―

Skye Bioscience's overall stock score is primarily hindered by significant financial challenges, including zero revenue and continuous losses. Despite strong earnings call highlights and a substantial cash position, the bearish technical analysis and valuation difficulties weigh heavily on the score.

Positive Factors

Strong Financial Position

The reduction in net loss and substantial cash reserves provide Skye Bioscience with a stable financial foundation to support ongoing R&D and clinical trials, crucial for a biotech company in its developmental stage.

Clinical Trial Progress

Successful enrollment and earlier-than-expected data readouts from the CBeyond trial demonstrate Skye's capability to advance its drug pipeline efficiently, enhancing its potential market entry timeline.

Strategic Focus on Nimacimab

Focusing resources on nimacimab, which has shown promising preclinical results, aligns Skye's strategy with its strengths and market opportunities, potentially leading to a more successful product launch.

Negative Factors

Zero Revenue and Consistent Losses

The absence of revenue and ongoing losses highlight the financial risk associated with Skye's operations, emphasizing the need for successful commercialization of its drug candidates to achieve sustainability.

Increased R&D Expenses

Rising R&D costs, while necessary for drug development, strain financial resources and require careful management to ensure long-term viability without immediate revenue offsets.

High Liabilities Relative to Assets

High liabilities compared to assets can limit Skye's financial flexibility, posing a risk to its ability to invest in growth opportunities and manage operational costs effectively.

Skye Bioscience Business Overview & Revenue Model

Company Description

Skye Bioscience, Inc., a biopharmaceutical company, discovers, develops, and commercializes cannabinoid-based molecules for the treatment of infectious diseases. The company's lead product candidate is SBI-100, which is in Phase I trials for the treatment of glaucoma and ocular hypertension. It is also developing SBI-200 that is in preclinical trials to treat and manage various eye diseases, including uveitis, dry eye syndrome, macular degeneration and diabetic retinopathy. The company was formerly known as Emerald Bioscience, Inc. and changed its name to Skye Bioscience, Inc. in January 2021. Skye Bioscience, Inc. was founded in 2012 and is headquartered in San Diego, California.

How the Company Makes Money

Skye Bioscience generates revenue through the development and eventual commercialization of its pharmaceutical products, which are primarily aimed at treating ocular diseases. The company's revenue model is built on the successful advancement of its drug candidates through clinical trials, regulatory approvals, and subsequent market entry. Key revenue streams include potential milestone payments and royalties from partnerships with larger pharmaceutical companies, as well as direct sales of approved products. Strategic collaborations and licensing agreements also play a crucial role in funding research and development activities, which are critical to advancing the company's drug pipeline. However, as of the current data, Skye Bioscience may still be in the pre-revenue stage, focusing on research and development efforts to bring its drug candidates to market.

Skye Bioscience Financial Statement Overview

Summary

Skye Bioscience faces significant financial challenges typical of a biotech firm in its early stages, with zero revenue and consistent losses. Recent financing efforts have improved cash reserves, but the company's long-term success relies on revenue generation and cost management.

Income Statement

Skye Bioscience exhibits significant challenges in its income statement, primarily due to consistently zero revenue and substantial net losses over recent years. The lack of revenue growth and negative profit margins highlight the financial stresses typical in the biotechnology industry, especially for companies in the developmental stage.

Balance Sheet

The balance sheet shows a positive trend with significant growth in stockholders' equity in the latest year, driven by substantial financing activities. However, the company still faces high liabilities relative to its assets, as evidenced by the historical negative equity until the most recent year. The low debt level and increasing cash position are positives, providing some financial stability.

Cash Flow

Cash flow performance is weak, with consistently negative operating and free cash flows. However, the company has managed to secure substantial financing, which has improved its cash position. The free cash flow remains negative, indicating ongoing operational challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00	0.00
Gross Profit	0.00	0.00	0.00	0.00	0.00	-1.87K
EBITDA	-50.55M	-25.29M	-36.62M	-18.70M	-7.72M	-5.85M
Net Income	-51.23M	-26.57M	-37.64M	-19.48M	-8.52M	-6.56M
Balance Sheet
Total Assets	41.32M	72.76M	11.94M	9.11M	9.86M	2.67M
Cash, Cash Equivalents and Short-Term Investments	35.31M	68.42M	1.26M	1.24M	8.98M	2.47M
Total Debt	321.85K	455.59K	4.62M	1.98M	2.14M	1.50M
Total Liabilities	8.49M	4.61M	14.07M	12.12M	3.99M	2.22M
Stockholders Equity	32.84M	68.15M	-2.13M	-3.01M	5.86M	450.79K
Cash Flow
Free Cash Flow	-9.22B	-26.84M	-13.96M	-12.77M	-6.57M	-6.06M
Operating Cash Flow	-9.22B	-25.24M	-13.95M	-12.74M	-6.47M	-6.05M
Investing Cash Flow	-12.81B	-245.62K	6.60M	5.21M	-90.87K	-7.23K
Financing Cash Flow	23.78K	83.56M	16.44M	-208.79K	13.08M	6.70M

Skye Bioscience Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SKYE, the sentiment is Negative. The current price of 1.3 is below the 20-day moving average (MA) of 1.48, below the 50-day MA of 2.53, and below the 200-day MA of 2.69, indicating a bearish trend. The MACD of -0.26 indicates Negative momentum. The RSI at 33.19 is Neutral, neither overbought nor oversold. The STOCH value of 21.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SKYE.

Skye Bioscience Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INMB	52 Neutral	$37.75M	―	-155.77%	―	19.05%	2.01%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
LTRN	45 Neutral	$39.20M	-2.03	-104.58%	―	―	1.18%
ATNM	41 Neutral	$42.11M	-1.03	-130.59%	―	-100.00%	13.14%
SKYE	38 Underperform	$41.67M	―	-94.31%	―	―	-53.18%
OTLK	38 Underperform	$69.74M	―	―	―	―	86.28%
BTAI	37 Underperform	$36.54M	-0.15	―	―	-66.96%	71.83%

Skye Bioscience Corporate Events

Skye Bioscience Updates Inducement Equity Incentive Plan

On February 24, 2025, Skye Bioscience, Inc.’s Board of Directors approved an Amended and Restated 2024 Inducement Equity Incentive Plan. This plan provides the Administrator with broader authority over equity awards in the event of a Change in Control, allowing for actions such as cancellation, substitution, or replacement with cash incentives, while maintaining most terms from the previous plan.